London's Fenchurch Street To Have a New 36-storied Office Building Whose Construction Begins in 2024

The asset management division of AXA SA has purchased a block of land on Fenchurch Street in the City of London, where it aims to construct a new 36-story tower, speculating that office employees' reluctance to return to work would not stop tenants from leasing space.

The French company has signed a 250-year lease on 50 Fenchurch Street, an area popular with insurers due to its closeness to Lloyd's of London, in anticipation of a lack of environmentally friendly office space in the future years.

The coronavirus epidemic has expedited a move toward flexible working, which threatens to render large portions of older office space in the world's financial centres obsolete. While the economic uncertainty generated by the epidemic prompted some developers to halt new projects, others are now forging forward with the expectation that the economy will be stronger by the time the buildings are finished.

The Clothworkers' Company will also get a new livery hall as part of the renovation.

IPE Real Assets estimates that the entire investment cost will exceed £1 billion (€1.2 billion).

Isabelle Scemama, worldwide head of AXA IM Alts and CEO of AXA IM Real Assets, said, "Since the pandemic, occupier demand for high-quality, sustainable, and wellness-focused workplaces has increased significantly.

"We have seen this firsthand at our flagship property, 22 Bishopsgate, which is already 80 percent leased, and we anticipate this flight to excellence to intensify in the coming years as companies adjust to new working patterns." "50 Fenchurch gives us with a unique chance to acquire a premier development site in the City of London, which we continue to feel is one of the most coveted office locations."

Jocelyn Stuart-Grumbar, clerk to The Clothworkers' Company and chief executive officer of The Clothworkers' Foundation, said that the transaction is part of the company's long-term plan to invest in the future of The Clothworkers' Company and The Clothworkers' Foundation.

"This plan affords us the chance to unleash our assets and expand our charitable influence as we assist our communities in recovering from the epidemic and ensure our philanthropic legacy for the next 500 years."

Source:  AXA IM Alts